Latest news with #EngineNo.1
Globe and Mail
18-03-2025
- Business
- Globe and Mail
Chevron's Power Play: Fueling AI Growth with Natural Gas & Carbon Capture
Chevron Corporation is stepping into data center power generation. The company is focusing on locations with easy access to natural gas and lower carbon intensity. Chevron CEO Mike Wirth revealed and discussed these plans at the CERAWeek energy conference by S&P Global in Houston. Hyperscale companies want off-grid power sources to speed up their market entry. This makes Chevron's proposed facilities very crucial. Wirth highlighted, 'One of the criteria in site selection will be access to gas. It will also be proximity to carbon capture and storage capacity, access to renewables, potentially off the grid, access to geothermal or potentially hydrogen, so we're looking for ways to reduce the carbon intensity over time.' Chevron aims to develop these facilities in key U.S. regions like the Southeast, Midwest, and West. The company plans to place power plants near data centers. This will help ensure reliable energy and lessen reliance on the grid. Chevron, Engine No. 1, and GE Vernova To Power U.S. Data Centers In January, Chevron announced a partnership with Engine No. 1 LP. Together, they will develop gas-fired power plants designed for U.S. data centers. These 'power foundries' will use GE Vernova's 550-MW 7HA gas turbines and will deliver up to four gigawatts of power, equivalent to powering 3-3.5 million U.S. homes. Deliveries will start in 2026, and Chevron expects power generation to begin by late 2027. Chris James, founder of Engine No. 1, stressed the importance of energy in AI growth. 'Energy is the key to America's AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America's standing as an industrial superpower. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.' These gigawatt-scale power solutions will help data centers that need quick setup and dependability. The initial design keeps these plants off the grid but can be integrated in the future. Consequently, this will reduce strain on the grid and lower consumer electricity price risks. Future expansions could increase capacity, providing reliable power for U.S. AI data centers. The press release further revealed that a key part of Chevron's initiative is integrating lower-carbon solutions over time. The power plants will use carbon capture and storage (CCS) technology that can potentially remove 90% of CO2 emissions from gas turbines. Notably, these facilities might use renewable energy sources such as solar, wind, and hydrogen. This will help reduce carbon intensity even more. Sourced from Chevron Sustainability Report Natural Gas and CCUS: Future Outlook The Net Zero Emissions (NZE) Scenario predicts gas demand will peak soon and drop 30% by 2030 to 3,300 bcm. By 2050, demand could fall 70% from 2021 levels to 1,200 bcm, with 40% used for hydrogen production with CCUS. Despite falling demand, continued investment is needed to sustain supply. The NZE Scenario estimates $200 billion per year until 2030, then $85 billion annually. The NZE Scenario promotes policies for CCUS investment. By 2050, CCUS could capture 6.2 Gt of CO₂, helping cut emissions in industries like cement and data centers. Sourced from Chevron Sustainability Report AI Boom Fuels Natural Gas Surge AI and cloud computing are increasing energy use. So, securing stable power sources is now essential. Traditional grid systems can't keep up, so companies look for direct energy solutions. S&P Global further noted that analysts predict U.S. data centers could demand an extra 3-6 Bcf/d of gas by 2030. However, the exact role of gas in this growth is unclear and could be due to an increase in renewable energy investments. Chevron's natural gas production is already increasing. In Q4 2024, the company averaged 2.74 Bcf/d, with full-year production reaching 2.68 Bcf/d—up 27% from 2023. The Permian Basin remains a major source, producing 20.5 Bcf/d in 2024, an 80% increase over five years. By 2028, production could exceed 24 Bcf/d, solidifying the region's role in the energy landscape. Fluctuating Permian gas prices have also shaped Chevron's strategy. According to data from Platts (a part of Commodity Insights), in 2024, Waha Hub prices in West Texas often fell below zero due to pipeline issues, averaging just 2 cents/MMBtu. Chevron plans to redirect excess gas to power foundries. This approach captures value and supports AI growth. Chevron's Power Shift: Merging Energy, AI, and Sustainability Chevron is transforming energy infrastructure with its move to behind-the-meter power generation. This shift goes beyond AI and data centers, driving a broader push toward localized power production. The joint venture will create thousands of jobs and boost U.S. reindustrialization. Chevron's power plants will also sell excess electricity back to the grid that will further boost stability. This model balances immediate AI-driven power needs with long-term grid support. The oil giant's endeavors don't end here. As per its sustainability report, the company is investing $8 billion in lower-carbon energy projects from 2021 to 2028, focusing on renewable fuels, carbon capture, hydrogen, and offsets. It is also committing an additional $2 billion to cut 4 million metric tons of emissions annually within its operations. Chevron's entry into the data center brings energy and technology together. The company wants to keep up with the rising demand for AI while also strengthening U.S. energy security. The big investments and partnerships are helping it lead in the rapidly evolving energy landscape. For real-time insights into carbon pricing, visit our Live Carbon Pricing page.
Yahoo
30-01-2025
- Business
- Yahoo
Chevron and Engine No.1 link for US data centres power solutions
Chevron USA and US investor Engine No.1 have partnered to establish a new company to develop natural gas-fired power plants for US-based AI data centres, in collaboration with energy company GE Vernova. The plans address the growing need for affordable and reliable energy, essential for powering US data centres and fostering AI development within the country. The joint development is projected to deliver up to 4GW by the end of 2027, with the potential for further expansion. The partnership will establish the first multi-gigawatt-scale power plant and data centre. Engine No.1 founder and chief investment officer Chris James stated: 'Energy is the key to America's AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centres, we can secure AI leadership, drive productivity gains across our economy and restore America's standing as an industrial superpower. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.' The first projects, referred to as "power foundries," will utilise seven US-made GE Vernova 7HA natural gas turbines serving co-located data centres in the Southeast, Midwest and West. The generated power will not flow through the existing transmission grid initially, mitigating the risk of electricity price increases for consumers. The projects are also designed to accommodate lower carbon solutions, such as carbon capture and storage, which can capture 90% of CO₂ emissions from the turbines, and the integration of renewable energy resources. Power demand from data centres is projected to increase by 16% up to 2029, as reported by Bloomberg. Technology companies are considering nuclear and renewable energy solutions to operate their data centres. However, gas-fired power plants remain competitive due to their lower cost and construction, presenting opportunities for gas producers and gas plant operators. GE Vernova chief executive officer Scott Strazik stated: 'We are excited to enable the advancement of data centre growth in the US by supporting delivery of critical power needs to customers using innovative solutions. GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavour possible.' In January 2025, NextEra Energy partnered with GE Vernova to develop natural gas-fired power generation projects to supply electricity to AI data centres and other major power consumers. "Chevron and Engine No.1 link for US data centres power solutions" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
28-01-2025
- Business
- The Independent
Chevron, Engine No. 1 and GE Vernova team up on powering US data centers, with AI in focus
Energy company Chevron is partnering with Engine No. 1 and GE Vernova to create natural gas power plants in the United States that will be linked to data centers in order to support increased demand for electricity at these centers, particularly for the development of artificial intelligence. The joint venture is looking to create a multi gigawatt-scale co-located power plant and data center. The announcement comes as Chinese tech startup DeepSeek 's new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI's ChatGPT. The launch of DeepSeek's AI assistant made Wall Street tech superstars' stocks tumble, along with those of some energy companies. Observers are eager to see whether the Chinese company has matched America's leading AI companies at a fraction of the cost. Last week President Donald Trump signed an executive order on AI that will revoke past government policies his order says 'act as barriers to American AI innovation.' He also talked up a joint venture investing up to $500 billion for infrastructure tied to AI by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. Chevron, Engine No. 1 and GE Vernova said Tuesday that their first projects, called 'power foundries,' are expected to leverage seven American made GE Vernova 7HA natural gas turbines. The projects are expected to serve co-located data centers in the Southeast, Midwest and West regions of the country. The venture has yet to select the sites. The companies said that power generation is not designed to flow initially through the existing transmission grid, reducing the risk of raising electricity prices for consumers. The joint development plans to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. homes, with initial in-service targeted by the end of 2027 and the potential for project expansion beyond that. 'Energy is the key to America's AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America's standing as an industrial superpower," Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a statement. "This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.'
Yahoo
28-01-2025
- Business
- Yahoo
Chevron, Engine No. 1 and GE Vernova team up on powering US data centers, with AI in focus
Energy company Chevron is partnering with Engine No. 1 and GE Vernova to create natural gas power plants in the United States that will be linked to data centers in order to support increased demand for electricity at these centers, particularly for the development of artificial intelligence. The joint venture is looking to create a multi gigawatt-scale co-located power plant and data center. The announcement comes as Chinese tech startup DeepSeek 's new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI's ChatGPT. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The launch of DeepSeek's AI assistant made Wall Street tech superstars' stocks tumble, along with those of some energy companies. Observers are eager to see whether the Chinese company has matched America's leading AI companies at a fraction of the cost. Last week President Donald Trump signed an executive order on AI that will revoke past government policies his order says 'act as barriers to American AI innovation.' He also talked up a joint venture investing up to $500 billion for infrastructure tied to AI by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. Chevron, Engine No. 1 and GE Vernova said Tuesday that their first projects, called 'power foundries,' are expected to leverage seven American made GE Vernova 7HA natural gas turbines. The projects are expected to serve co-located data centers in the Southeast, Midwest and West regions of the country. The venture has yet to select the sites. The companies said that power generation is not designed to flow initially through the existing transmission grid, reducing the risk of raising electricity prices for consumers. The joint development plans to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. homes, with initial in-service targeted by the end of 2027 and the potential for project expansion beyond that. 'Energy is the key to America's AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America's standing as an industrial superpower," Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a statement. "This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.'
The Hill
28-01-2025
- Business
- The Hill
Chevron, Engine No. 1 and GE Vernova team up on powering US data centers, with AI in focus
Energy company Chevron is partnering with Engine No. 1 and GE Vernova to create natural gas power plants in the United States that will be linked to data centers in order to support increased demand for electricity at these centers, particularly for the development of artificial intelligence. The joint venture is looking to create a multi gigawatt-scale co-located power plant and data center. The announcement comes as Chinese tech startup DeepSeek 's new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI's ChatGPT. The launch of DeepSeek's AI assistant made Wall Street tech superstars' stocks tumble, along with those of some energy companies. Observers are eager to see whether the Chinese company has matched America's leading AI companies at a fraction of the cost. Last week President Donald Trump signed an executive order on AI that will revoke past government policies his order says 'act as barriers to American AI innovation.' He also talked up a joint venture investing up to $500 billion for infrastructure tied to AI by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. Chevron, Engine No. 1 and GE Vernova said Tuesday that their first projects, called 'power foundries,' are expected to leverage seven American made GE Vernova 7HA natural gas turbines. The projects are expected to serve co-located data centers in the Southeast, Midwest and West regions of the country. The venture has yet to select the sites. The companies said that power generation is not designed to flow initially through the existing transmission grid, reducing the risk of raising electricity prices for consumers. The joint development plans to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. homes, with initial in-service targeted by the end of 2027 and the potential for project expansion beyond that. 'Energy is the key to America's AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America's standing as an industrial superpower,' Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a statement. 'This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.'
